SANTO DOMINGO.-A total of 46,205 new movable asset guarantees were registered in the first eight months of operation of the Electronic Movable Asset Guarantee System (SEGM), a modality that came into operation in January of this year and is attached to the Ministry of Industry, Commerce and MSMEs, constituting an important step forward in facilitating access to financing for micro, small and medium-sized enterprises in the Dominican Republic.
The information was provided by the Association of Multiple Banks of the Dominican Republic (ABA), after positively assessing the implementation of the new system, during a meeting between executives of the entity, headed by its president, Rosanna Ruiz, with economic editors and directors of different media outlets.
The ABA pointed out that the system also includes 174,094 guarantees registered prior to the entry into force of Law 45-20 on the Electronic System of Movable Guarantees, so that financial actors could know which guarantees had already been granted, according to data from the Ministry of Industry and Commerce, the entity that manages the SEGM.
The association also stated that the data from the first months of operation of the SEGM generates confidence in the financial sector that the ecosystem of movable asset guarantees can be completed for the benefit of the country's productive sectors, especially SMEs.
In a press release, he stated that this system is in line with the National Development Strategy, which prioritizes action areas to increase efficiency, development, and access for the people to MSMEs as the engine of the country's development.
He emphasized that, traditionally, the preferred guarantee in the Dominican economic system is real estate, which diminishes the development capabilities for SMEs; unlike this new system, which offers facilities for strengthening this sector by using production machinery, patents, cash flow, and even copyright earnings as guarantees.
In that regard, the Banking Association pointed out that companies or individuals can have movable assets as collateral without dispossession, meaning that they will remain in the hands of those who access the credit in order to continue with their productive activity.
He cited other advantages of the SEGM, such as allowing real-time information on what assets have been pledged as collateral, what type of asset it is, and what it represents as part of the loan granted, which contributes to the robustness of the financial sector.
"The expectation is that in the medium to long term, this regulation will lead to economic growth and strengthening by bolstering the MSME sector as they gain access to formal credit within the banking system, increase their efficiency, become formalized, and generate secure financial backing," stated the ABA.
He explained that the users incorporated into the system include law firms, financial intermediation entities, municipal government entities, financial institutions of the Executive Branch, public accountants, and others.
